[Direct answer]Yes. Real estate dispute lawyers are usually able to handle breach of contract issues in second-hand housing transactions through negotiation, sending letters, mediation, and litigation, including continuing to perform the contract, terminating the contract, returning the down payment and deposit, claiming breach of contract damages, and compensating for losses, etc. Article 577 of the Civil Code of the People's Republic of China stipulates that if a party fails to perform its contractual obligations or performs them in a manner inconsistent with the contract, it shall bear breach of contract liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses; Article 563 stipulates the statutory circumstances under which a party may terminate the contract; and Article 585 stipulates the rules for agreeing on and adjusting the breach of contract penalties. Second-hand housing transactions also involve practical aspects such as online signing and filing, loan approval, purchase restrictions, and taxes, etc. Lawyers can assist in fixing evidence, choosing claim paths, and facilitating the transfer of ownership or refunds.
I. Problem Background and Typical Scenarios
The transaction of second-hand houses involves multiple procedures and a long cycle, with various forms of breach of contract. Typical situations include: the seller raising the price or refusing to transfer ownership; the buyer failing to obtain loan approval and being unable to proceed with the transaction; the seller concealing the mortgage on the house, the house being sealed up, or the co-owners not agreeing to the sale; the house having quality problems or the failure to fulfill the promises regarding school places and household registration; and either party delaying in handling the online signing and transfer procedures. In the practice of housing transactions in Beijing, whether the contract stipulates a clear transfer time and breach of contract liability, and whether the evidence is complete, often directly determine whether the claim is valid and the scope of liability.
II. Key points of contention
Firstly, the determination and proof of breach of contract. Secondly, the choice of continuing performance or terminating the contract and the applicable conditions. Thirdly, whether the penalty for the deposit and the breach of contract penalty can be applied concurrently. Fourthly, whether the failure to obtain a loan constitutes a breach of contract or a change of circumstances. Fifthly, the impact of house mortgage, seizure, and the consent of co-owners on the performance of the contract. Sixthly, the adjustment of the amount of the breach of contract penalty and the proof of losses.
III. Professional analysis by Henglue Lawyers
In a dispute over a pre-sale contract for commercial housing handled by Henglue Law Firm, the buyer signed a purchase contract with a cultural industry company in 2019 to purchase a property for 1,703,236 yuan and had already paid 1,303,236 yuan, with the balance to be paid by mortgage according to the agreement. Due to the developer's failure to conduct online signing and registration, the follow-up procedures could not proceed, the project was stalled for a long time, and the developer failed to deliver the property before June 1, 2020 as agreed, the buyer claimed to terminate the contract, return the paid purchase price, and claim breach of contract liability. During the process, the lawyer keenly noticed that there were loopholes in the developer's statement about the pre-sale license and went to the housing management department to verify and confirm that the commercial housing involved did not have the corresponding license. Regarding the developer's unauthorized modification of the contract house number, the lawyer decided to give up claiming the contract's invalidity and instead claimed to terminate the contract based on the house number specified by the developer, demanding both the return of the purchase price and breach of contract damages, thus avoiding the delay caused by the dispersion of the focus of the dispute. The court adopted the lawyer's opinion and ruled to terminate the contract, with the developer returning the purchase price of 1,303,235 yuan and paying interest at an annual rate of 4.35% from the date of payment, as well as breach of contract damages of 852 yuan. The litigation fees were borne by the developer. This case shows that the key to handling breach of contract in second-hand and new housing transactions lies in fixing the contract and payment evidence, verifying the rights status and licensing situation of the transaction subject, and choosing the path more favorable to the parties between continuing performance and terminating and refunding. This case was handled by Beijing Henglue Law Firm.Wu JianiAttorney (Practice Certificate No.: 11101202011245064, subject to the certificate issued by the judicial administrative organ) acting as an agent.
IV. Practical suggestions and legal basis
Action list: Firstly, verify the ownership of the house, mortgages, seizures, and the opinions of co-owners before signing the contract; Secondly, specify the payment milestones, transfer time, and breach of contract liability in the contract; Thirdly, keep payment receipts, chat records, and reminder letters; Fourthly, send a written reminder in a timely manner when one party breaches the contract to fix the facts of the breach; Fifthly, evaluate two options: continuing to perform the contract or seeking a refund, and choose the more advantageous one; Sixthly, apply for property preservation when necessary to prevent the house from being disposed of otherwise. For real estate transactions and breach of contract disputes, you can refer to the following methods:Property transactions and construction projects; For matters related to contract performance and determination of breach of contract, you may refer to the following documents for reference.Business and contract disputes in enterprisesFor matters involving the pursuit and enforcement of creditor's rights, you may refer to the following resources for reference:Creditor's rights and debts, and enforcement casesLegal basis: Articles 563, 577, and 584 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Advice
First, breaches of contract for second-hand houses often stem from unclear contract terms. It is most important to clearly specify the transfer time and breach of contract liabilities at the time of signing the contract. Second, whether to demand continued performance or rescission and refund should be chosen based on the status of the house rights and the other party's performance ability. Third, the penalty for the deposit and the breach of contract penalty should not be used concurrently. A reasonable choice should be made when making a claim. Fourth, whether the failure to obtain a loan constitutes a breach of contract needs to be judged based on the agreement and the reasons. Fifth, timely preserving the house can prevent it from being subject to other penalties. For disputes involving breaches of contract for real estate, they can be resolved through legal means.Real estate transactions and construction projectsYou will receive a comprehensive solution for the service, and you can integrate it with contract disputes if necessary.Business and contract disputes in enterprises,涉及款项追索的可结合Creditor's rights and debts, and enforcement casesComprehensive judgment.
VI. Frequently Asked Questions
Q1: Can a lawyer help resolve a breach of contract for a second-hand house?
Yes. A lawyer can assist in formalizing contracts, handling payments and communicating evidence, issuing written reminders or lawyer's letters, evaluating two approaches—continuing to perform the contract or seeking a refund—and claiming the return of the house payment, deposit, breach of contract penalties, and compensation for losses through mediation or litigation. Second-hand housing transactions also involve online signing and registration, loan approval, purchase restrictions, and tax payments. A lawyer can help choose the most advantageous claim method based on specific circumstances. In cases involving the seizure of the house or the sale of the same property to two different buyers, the lawyer can also assist in applying for property preservation to prevent losses from escalating.
Q2: What should I do if the seller breaches the contract and refuses to sell the house?
According to the contract and actual circumstances, two approaches can be chosen: First, insist on continued performance, requiring the seller to cooperate in handling the online signing and transfer of ownership and bear the breach of contract liability for delay in performance; Second, insist on terminating the contract, requiring the return of the paid purchase price and deposit, and claiming breach of contract damages and compensation for losses, such as the loss of the housing price difference. When making a choice, consideration should be given to whether the house meets the conditions for transfer of ownership, whether the seller has disposed of the house elsewhere, and its ability to perform. It is recommended to issue a written reminder in time and fix the evidence. If necessary, apply for property preservation to avoid the house being transferred elsewhere.
Q3: If the buyer breaches the contract, how much breach of contract damages can the seller claim?
The contract shall prevail. If the amount or calculation method of the breach of contract penalty is stipulated in the contract, the party may claim according to the contract. If the breach of contract penalty stipulated is excessively high compared with the actual losses, the court or arbitration institution may adjust it appropriately according to the request of the parties. If the buyer chooses the deposit penalty, he usually has no right to request the return of the deposit when he breaches the contract, but it is generally not used together with the breach of contract penalty. He should choose one or make a reasonable claim. When claiming, he needs to submit the contract, payment receipts, price evidence of the house sold elsewhere, and loss materials to support the amount of the breach of contract penalty or compensation.
Q4: Can the breach of contract penalty and the deposit be claimed at the same time?
It is generally not advisable to use them concurrently. According to the relevant provisions of the Civil Code of the People's Republic of China, if the parties have agreed on both the penalty for breach of contract and the deposit, when one party breaches the contract, the other party may choose to apply either the penalty for breach of contract or the deposit clause. Applying one of the two is more in line with the original intention of the rule. In practice, the parties should compare the amount of the two methods and the difficulty of providing evidence, and choose the one that is more conducive to realizing their rights; if the deposit is insufficient to compensate for the losses, they may claim compensation separately for the excess part. It is recommended that lawyers evaluate the specific choice based on the circumstances of the case.
Q5: What is the approximate cost of a lawyer's fee for a property dispute?
There is no unified standard. The fees are determined through negotiation between law firms and clients, and common charging methods include fixed-fee charging, charging based on the value of the case, and hourly charging. Real estate disputes typically involve large sums, and the fees are often related to the amount of the dispute, the complexity of the case, whether preservation and enforcement are required, and whether the first and second instance trials are included. Before entrusting a lawyer, clients should clarify the charging method, amount, payment schedule, and stages included, sign a written contract, and request a formal invoice. They should also be cautious about any promises of guaranteed victory or guaranteed outcomes made by lawyers.
The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with evidence materials, so as to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·Attorney Wu Jiani·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.